Choice of law Flashcards
Federal question claims
Federal substantive and procedural law will control, as well as federal common law.
Erie doctrine
A federal district court with diversity jurisdiction generally must apply the substantive law of the state in which it is located unless a federal statute applies.
In determining a state’s substantive law, the district court will be bound by the rulings of the forum state’s highest court.
If the state’s highest court has not yet ruled on an issue, the federal court tries to determine how the state’s highest court would rule.
Erie doctrine: burdens of proof
Questions about the burden of proof are considered procedural and thus are determined by the law of the forum state.
Erie doctrine: conflicts of law
The applicable choice-of-law rules are those of the forum state.
Erie doctrine: statutes of limitations
Generally, a federal court with diversity jurisdiction over an action is required to apply state substantive law, such as a statute of limitations, but is not required to apply a state procedural rule.
However, when that state procedural rule determines the applicability of the state statute of limitations, the federal court must apply the state procedural rule.
Erie doctrine: privilege
Federal courts are to apply state law with respect to privilege.
Otherwise, privilege is governed by federal common law.
Erie doctrine: determining conflict
When the court is faced with a substantive or procedural question for the purpose of applying the Erie doctine, the district court should determine whether there is a conflict between state and federal law with respect to the issue before the court.
If there is no conflict between state and federal law, then the analysis does not need to proceed any further because the court can apply both state and federal law.
Erie doctrine: forum shopping
To prevent forum shopping (selecting a court based upon the court in which the plaintiff believes he will receive a favorable outcome), the court will follow state law if selecting state law would prevent overcrowding of the federal court system.
Erie doctrine: order of analysis
When sitting in diversity, a federal court must determine, in the following order:
(1) Whether there is a conflict between applicable state and federal law;
(2) If so, then whether there is a valid federal statute or rule covering the disputed issue;
(3) If there is a federal rule on point, then whether the rule is valid under the Rules Enabling Act: Whether the rule abridges, enlarges, or modifies any substantive right.
Federal common law
In deciding whether to apply a federal rule in lieu of a state rule, a federal court must determine whether there is a federal interest at stake requiring the application of the federal rule.
